The Nation Newspaper

Tag: forex market

  • CBN injects $210m into forex market

    The Central Bank of Nigeria (CBN) yesterday injected  $210 million  into various segments of the foreign exchange market to meet customers’ requests.

    The apex bank offered $100 million to authorised dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment got $55 million.

    According to figures obtained from the bank, customers needing foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the sum of $55 million.

    It will be recalled that last week, CBN approved an upward review of the trading margin available to operators of Bureau De Change (BDC) in the country, allowing BDC operators could buy the United States dollar from the CBN at the rate of N357/$1 and sell at N360, thereby leaving them with a positive margin of N3.00 per dollar sold.

    Meanwhile, the Acting Director, Corporate Communications Department (CCD), Isaac Okorafor, reiterated the bank’s commitment to continue to intervene in the interbank foreign exchange market, in line with its pledge to sustain liquidity in the market and maintain stability. Okorafor reiterated that the CBN would sustain its strategic management of forex, with a view to reducing the country’s import bills and halting depletion of its foreign reserves.

    The bank last Monday, June, intervened to the tune of $210 million to cater for requests in the wholesale segment of the market. Meanwhile, the naira continued its stability,  exchanging at an average of N362/$1 in the BDC segment.

  • CBN injects $210m into forex market

    The Central Bank of Nigeria (CBN) yesterday boosted the inter-bank Foreign Exchange market with another sum of $210 million.

    The apex bank offered $100 million to authorised dealers in the wholesale segment of the market. The Small and Medium Scale Enterprises (SMEs) segment got $55 million while the sum of $55 million was apportioned to invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA).

    CBN’s Acting Director, Corporate Communications Department, Isaac Okorafor, confirmed the figures and reiterated CBN’s capacity to continue to sustain the foreign exchange intervention.

    He urged authorized dealers to help sustain the confidence in the foreign exchange market by continuing to honour requests from customers with genuine needs.

    It will be recalled that the Central Bank of Nigeria last Friday, May 4, 2018 intervened in the Secondary Market Intervention Sales (SMIS) to the tune of $349.34m.

    Meanwhile, the Naira, on Tuesday, May 8, 2018, continued to maintain its stability in the FOREX market, exchanging at an average of N362/$1 in the BDC segment of the market.

    Meanwhile, traders said the currency started to weaken last week as demand piled up especially from companies seeking to repatriate dividends and investors booking profits from local assets. Importers buying goods from abroad were also exerting pressure on the naira.

    Nigeria emerged from its first recession in a quarter of a century last year but growth is still fragile. It then introduced a multiple exchange rate regime to manage dollar demand as a way to alleviate chronic shortages on the currency markets.

  • Naira dips marginally against dollar at parallel market

    The Naira on Tuesday depreciated marginally against the dollar at the parallel market, exchanging at N361.20 to the dollar.

    The Nigerian currency lost 20 kobo from N361 earlier traded before the Easter break.

    The naira also closed at N508 and N444 respectively against the Pound Sterling and the Euro.

    At the Bureau De Change (BDC) window, the naira traded at N362 to the dollar, Central Bank of Nigeria (CBN) controlled rate, while the Pound Sterling and the Euro closed at N508 and N444 respectively.

    The Nigerian currency closed at N361.35 to the dollar at the investors’ window, while it traded at N305.65 at the interbank window.
    Traders at the currency market expressed anxiety over the likelihood of a slight change in policy as the CBN Monetary Policy Committee (MPC) holds at the nation’ capital, Abuja.

    NAN reports that the first MPC meeting in 2018, which began on Tuesday, would be concluded by Wednesday.

    Meanwhile, the naira had remained very stable at the foreign exchange market as the apex bank had remained committed in boosting liquidity at the FOREX market.

    Read Also: Naira remains stable against Dollar, Euro

    NAN

     

     

  • CBN injects $210m into forex market

    The Central Bank of Nigeria (CBN) yesterday injected $210 million into the inter-bank foreign exchange market. The fund is in line with the regulator’s determination to sustain liquidity in the market, and ensure forex availability to meet customers’ needs at various segments of the market.

    According to the figures obtained from the CBN, the apex bank offered $100 million to authorised dealers in the wholesale segment, while the Small and Medium Enterprises (SMEs) segment got $55 million.

    Customers requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated $55 million.

    CBN’s Acting Director, Corporate Communications Department, Isaac Okorafor, confirmed the figures and reassured the public that the bank would continue to intervene in the interbank  market in line with its desire to sustain liquidity in the market and maintain stability.

    He said steps taken so far by the bank in the management of forex was paying off, as reflected by reduction in the country’s import bills and accretion to its foreign reserves.

    The CBN had last Monday injected $210 million into the Wholesale segment of the forex market.

    Meanwhile, the naira continued its stability in the forex market, exchanging at an average of N360/$1 in the bureau de change segment of the market.

  • CBN boosts forex market with $210m intervention

    The Central Bank of Nigeria (CBN) yesterday injected $210 million into the inter-bank Foreign Exchange Market.  The intervention is in line with the apex bank’s quest to guarantee the availability of forex for customers’ needs in various segments of the market.

    Figures obtained from the CBN showed that that the regulator offered $100 million to authorised dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment received the sum of $55 million.

    Customers requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the sum of $55 million.

    The bank’s Acting Director, Corporate Communications Department (CCD), Isaac Okorafor, confirmed the figures and reassured the public that the Bank would continue to intervene in the interbank foreign exchange market in line with its desire to sustain liquidity in the market and maintain stability.

  • CBN sustains intervention in forex market

    To guarantee liquidity in the market, the Central Bank of Nigeria (CBN), injected  $355.43 million into the Retail Secondary Market Intervention Sales (SMIS) at the weekend.

    Figures obtained from the CBN over the weekend revealed that the figure was to meet requests in the agricultural, airlines, petroleum products and raw materials and machinery sectors.

    The Bank’s Acting Director, Corporate Communications Department, Mr. Isaac Okorafor confirmed the figures, reiterating that the CBN interventions in the market were aimed at sustaining liquidity in the market as well as boosting production and trade.

    He explained that with increasing accretion to the country’s reserve, the Bank is in a much better position to ensure liquidity in the inter-bank sector of the market and as such would continue to intervene in order to drive growth in the economy and guarantee stability in the market, particularly now that the economy had gained steam due to an upsurge in the non-oil sector.

    With the rates closing at N360/$1 last Friday, Okorafor, expressed confidence that the bank’s forex intervention underscored its determination to maintain the country’s external reserves in order to safeguard the international value of the Naira.

    It will be recalled that the CBN, in its last SMIS in February 2018, injected  $321.4 million into the interbank market, while also intervening in the inter-bank Foreign Exchange Market to the tune of $210,000,000, comprising $100million for the wholesale segment and $55 million for both the Small and Medium Enterprises (SMEs) and invisibles segment.

  • CBN lifts forex market with $210m

    The Central Bank of Nigeria (CBN) has injected $210 million into the inter-bank Foreign Exchange Market.

    The forex injection is part of the apex bank’s desire to ensure the availability of forex and also meet customers’ requests in various segments of the market, the

    Figures obtained yesterday from the bank indicated that the CBN offered $100 million to authorised dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment got $55 million.

    Customers requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the sum of $55 million.

    The bank’s Acting Director, Corporate Communications Department (CCD), Isaac Okorafor, confirmed the figures, adding that those who made bids in the wholesale window would receive value for the bids on Tuesday, February 06, 2018.

    Okorafor reassured the public that the Bank would continue to intervene in the interbank foreign exchange market in line with its quest to sustain liquidity in the market and maintain stability. He added that the steps taken so far by the Bank in the management of forex had paid off, as reflected by reduction in the country’s import bills and accretion to its foreign reserves.

    Meanwhile, the naira continued its stability in the forex market, exchanging at an average of N360/$1 in the BDC segment of the market yesterday.

  • CBN injects $210m into forex market

    CBN injects $210m into forex market

    The Central Bank of Nigeria (CBN) yesterday injected $210 million into various segments of the inter-bank foreign exchange market.

    The CBN had at the trading, offered $100 million as wholesale interventions and allocated $55 million to the Small and Medium Enterprises (SMEs) forex window. Customers requiring forex for Business/Personal Travel Allowances, tuition and medical fees, among others, equally got an allocation of $55 million.

    CBN’s Acting Director, Corporate Communications Department, Isaac Okorafor, confirmed the sales, reiterating that the bank would sustain its interventions in the foreign exchange market.

    He expressed optimism that the value of the naira would continue to spike in the face of accretion to the foreign reserves and the attendant reduction in the country’s import bill.

    While also attributing the stability in the market to the bank’s transparency and cooperation of authorised dealers, he urged all dealers to continue to play by the rules, as the CBN would not hesitate to sanction any erring bank or dealer.

    Meanwhile, the naira continued to maintain its stable run against major currencies around the globe, exchanging for N362/$1 in the bureau de change segment of the market as at yesterday.

  • Forex market intervention: ‘CBN spends $15.9b’

    Forex market intervention: ‘CBN spends $15.9b’

    The Central Bank of Nigeria (CBN) has spent $15.9 billion in nine months in its weekly intervention in the foreign exchange (forex) market, Managing Director, Afrinvest Securities, Ayodeji Ebo,  has said.

    He spoke at the Finance Correspondents Association of Nigeria (FICAN) Economic Outlook with the theme: Nigeria economy and financial market outlook: 2017 Review and 2018 Outlook held at the FICAN Centre, Lagos.

    Eboh said the intervention funds were for nine months, which started April and ended December, last year. He also said the figure was an improvement compared to the $9.6 billion spent in same period of 2016.

    He also said the Investors’ & Exporters’ Forex Window had recorded over $27.8 billion in turnover and brought about transparency and stability in the market.

    He added that current account stabilised in surplus position, expanding to $9.6 billion annualised in nine months, from $2.7 billion in fiscal year 2016.

    He said the foreign investors will be happy to see the interest rate remain at 14 per cent, even as the stability in the market has helped the foreign investors know that the economy is stable. “Foreign portfolio investments provide liquidity and confidence to the market. And keeping the interest rate at 14 per cent will help keep them coming,” he said.

    Speaking on loans to small and medium enterprises, he said delay and outright non-payment of borrowed funds by SMEs is making it difficult for key lenders within the sector, including Bank of Industry to grant further credits to operators.

    He said it is only when loans are repaid on timely basis that the lender has more capacity to lend to other borrowers.

    He said that inflation rate is still higher than Monetary Policy Rate, which makes it easier for investors to go for fixed income securities like Treasury Bills, Bonds and other instruments that help investors create lasting wealth.

    Ebo said the year 2018 remains an opportunity for investors to make money in both equities and fixed income securities, but advised investors to time their entry and exit accurately in order not to lose their funds.

    He said, there is strong correlation between oil price rise and equities performance, adding that investors always look out for profitable businesses and those with great prospects.

    On stability in the forex market, he said rate convergence has already been achieved by the CBN, adding that with low exchange rate margin, speculators have virtually abandoned the market.

    “Foreign investors also consider the margin between both official and parallel market level. When there is little or no volatility in the market, that gives foreign investors’ confidence. The naira gained 35 per cent year-on-year against the dollar to close at N363 to dollar by year-end in the parallel market,” he said.

    He said the Economic Recovery and Growth Plan (ERGP) of the Federal Government was built on five pillars, stabilise the microeconomic environment, achieve agriculture and food security, improve transportation infrastructure, ensure energy sufficiency in power and petroleum products and drive industrialisation, focusing on small and medium enterprises.

  • CBN injects $210m into forex market

    CBN injects $210m into forex market

    The Central Bank of Nigeria (CBN) has boosted the inter-bank Foreign Exchange Market with f $210 million injection. The fund will be used to meet customers’ foorex demands in various segments of the market.

    The CBN offered $100 million to authorised dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment got $55 million, according to figures obtained from the bank yesterday.

    The figures also indicated that customers needing foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were allocated the sum of $55 million.

    The bank’s Acting Director, Corporate Communications Department (CCD), Isaac Okorafor, reiterated the lender’s determination to continue to intervene in the interbank foreign exchange market, in line with its pledge to sustain liquidity in the market and maintain stability.

    According to him, the CBN will continue to manage the forex with a view to reducing the country’s import bills and minimize depletion of foreign reserves.

    The CBN had in the past week, intervened in the Retail Secondary Market Intervention Sales (SMIS) to the tune of $210 million, to cater for requests in the airlines, agricultural, petroleum products and raw materials and machinery sectors.

    Meanwhile, the naira continued its stability in the forex market, exchanging at an average of N361/$1 in the Bureaux De Change (BDC) segment of the market on Monday, January 22.